Ukraine and Russia strike new deal for supply of gas

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Russia and Ukraine have reached a messy compromise in their dispute over gas prices, allowing both sides to claim victory and calming fears of gas shortages in Europe this winter.

Under the deal, reached in Moscow in the early hours between the two countries’ gas monopolies, Russia’s Gazprom will be paid $230 per 1,000 cubic metres of gas exported to its ex-Soviet neighbour.

Ukraine will pay only $95 for the same unit, however, with the shortfall taken up by a joint venture trading company, RosUkrEnergo, that will become the country’s sole provider of gas and will also take over responsibility